708818--6/13/2006--QUALITY_SYSTEMS

related topics

{system, service, information}

{product, market, service}

{regulation, change, law}

{regulation, government, change}

{stock, price, operating}

{financial, litigation, operation}

{stock, price, share}

{acquisition, growth, future}

{personnel, key, retain}

{product, liability, claim}

{control, financial, internal}

{condition, economic, financial}

{product, candidate, development}

{property, intellectual, protect}

We face significant, evolving competition. Our quarterly operating results have historically fluctuated and may do so in the future. The price of our shares and the trading volume of our shares have been volatile historically and may continue to be volatile. Two of our directors are significant shareholders, which makes it possible for them to have significant influence over the outcome of all matters submitted to our shareholders for approval and which influence may be alleged to conflict with our interests and the interests of our other shareholders. We face risks related to litigation advanced by a director and shareholder of the Company We are dependent on our principal products and our new product development. If the emerging technologies and platforms of Microsoft and others upon which we build our products do not gain broad market acceptance, or if we fail to develop and introduce in a timely manner new products and services compatible with such emerging technologies, we may not be able to compete effectively and our ability to generate revenue will suffer. We face the possibility of subscription pricing. The industry in which we operate is subject to significant technological change. We face the possibility of claims based upon our Web site We face the possibility of claims from activities of strategic partners We may engage in future acquisitions, which may be expensive and time consuming and from which we may not realize anticipated benefits. We face the risks and uncertainties that are associated with litigation against us. We rely heavily on our proprietary technology. We are dependent on our license rights from third parties We face the possibility of damages resulting from internal and external security breaches, and viruses We are subject to the development and maintenance of the Internet infrastructure which is not within our control Our failure to manage growth could harm us. Our operations are dependent upon our key personnel. If such personnel were to leave unexpectedly, we may not be able to execute our business plan. Our products may be subject to product liability legal claims. We are subject to the effect of payor and provider conduct which we cannot control There is significant uncertainty in the healthcare industry in which we operate and we are subject to the possibility of changing government regulation. We may be subject to other e-commerce regulations We are subject to changes in and interpretations of financial accounting matters that govern the measurement of our performance Our per share price may be adversely effected if material weaknesses in our internal controls are identified by ourselves or our independent auditors Our earnings will be affected beginning fiscal year 2007 when we begin recognizing employee stock option expense, pursuant to recently issued accounting standards. Continuing worldwide political and economic uncertainties may adversely impact our revenue and profitability . Our future policy concerning the payment of dividends is uncertain. Our future policy concerning stock splits is uncertain

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708818--6/13/2006--QUALITY_SYSTEMS_INC